The central bank’s yuan outstanding for foreign exchange rose in September, snapping a 22-month decline, data from China’s central bank showed last Thursday. The funds increased by 850 million yuan ($128.6 million) from August to 21.51 trillion yuan, according to the People’s Bank of China. Meanwhile, Chinese banks saw a net foreign exchange purchase of $300 million in September, the first settlement surplus in the past 27 months as cross-border capital flows stabilized, official data showed.
JUMORE Reviews:
The rise of the funds and the net foreign exchange purchase could basically be attributed to the country’s stable and sound economic growth since the beginning of this year which leads to the yuan’s steady appreciation. Given China’s sound economic fundamentals, wider openness and more stable market expectations, cross-border capital flows will continue to be balanced and stable without sharp fluctuations.
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